When are companies bound by their own internal policies?
The General Division of Singapore's High Court recently dealt with a case involving an employee's claims against their employer regarding internal investigations, implied contractual duties, and lost career opportunities.
The worker argued his employer breached implied duties of mutual trust and confidence when handling an internal investigation against him.
He claimed this mishandling caused him to lose career advancement opportunities and affected his bonuses and salary increments over a five-year period.
At the core of this employment dispute was whether employers are bound by their internal policies and the extent to which they must exercise discretion reasonably, even when contracts appear to grant absolute discretion over matters like bonuses and promotions.
The worker, a male employee of an insurance company since 2000, remained employed throughout the proceedings as head of client and distribution Asia.
The dispute stemmed from the employer's internal investigations against him in 2018, following harassment allegations by a female employee who reported to him.
After the Tokyo District Court dismissed these harassment allegations in February 2023, the worker raised concerns about the employer's handling of the internal investigation. When the company's internal audit department declined to uphold his complaints, he started legal proceedings.
The worker claimed the employer...
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